Karoon to put $450m into new wells

Karoon Gas Australia
expects to spend $450 million in the next 18-24 months drilling 12 wells in Australia, Peru and Brazil, targeting 1-2 billion barrels of oil equivalent of resources.

About $250 million will be invested in drilling in the Browse Basin off Australia’s far north-west coast, $100 million in Brazil and $100 million in Peru, Karoon’s managing director
Bob Hosking
told reporters.

Karoon’s Browse drilling program with partner ConocoPhillips has been delayed after the federal environment department toughened up the approvals process in the wake of the Montara oil spill in 2009, insisting that the project be subject to a full public environmental review process.

Conoco has since been locked in talks on a compromise agreement that would involve a streamlined approvals process and a modified drilling campaign.

Drilling was due to start last month but may now start only this quarter or next, Mr Hosking said.

Karoon expects to start drilling in Brazil late this year but will first farm out a 20-30 per cent stake in the exploration venture, taking advantage of the many companies seeking to get into the prolific Santos Basin, Mr Hosking added.